Roundy's Sells 18 Rainbow Stores to Supervalu and Local Grocers for 65 Million Dollars

<p> Roundy’s is selling 18 Rainbow stores to a group of local grocery retailers, including Supervalu, in a <B>$65 million deal</b> in attempts to fully exit the Minneapolis/St. Paul market. Supervalu’s aggregate purchase price across its multiple purchase agreements is approximately <B>$35 million</b>. Roundy’s is still seeking additional buyers for its 9 remaining Rainbow stores, according to a press release.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Roundy’s Chairman, President, and CEO, Robert A. Mariano, said that the <B>economic downturn</b> and <B>increased competition</b> in the Twin Cities has made it difficult to keep the Rainbow banner competitive. “We believe the sale of these Rainbow stores to this group of local operators will provide those stores better stewardship in serving their communities in the Minneapolis/St. Paul market going forward,” said Mariano. “The transaction will also allow us to better focus strategically on growing our Mariano’s banner in the Chicago market and strengthening our business in our core Wisconsin markets.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Once the transaction is completed, these acquired stores will be operated by Supervalu, a Cub franchisee, or an independent retailer as <B>10 new CUB Foods locations</b> and <B>two new Byerly’s locations</b>. Six locations are expected to be operated under the <B>Rainbow banner</b>.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “Supervalu is thrilled to participate in this consortium of retailers that is acquiring Rainbow stores,” said Sam Duncan, Supervalu’s President and CEO. “We’re especially pleased that highly respected independent retailers here in the Twin Cities are also acquiring Rainbow stores. These independent retailers are great customers to Supervalu who understand the importance of being a strong community grocer.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The transactions are expected to be completed by the end of the summer and are subject to customary closing conditions. Who might be looking to purchase those remaining Rainbow stores?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we continue reporting on Roundy’s exit from the Twin Cities market.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://phoenix.corporate-ir.net/phoenix.zhtml?c=251227&amp;p=irol-IRHome" target="_new"> Roundy’s </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.supervaluinvestors.com/phoenix.zhtml?c=93272&amp;p=irol-irhome" target="_new"> Supervalu </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">